The Need for an Alternative Vision on Tax Reform

The Democrats have missed a golden opportunity in not offering up a competing vision on Tax Reform, even if they cannot do any more than introduce it in a news conference - and by the way its time to reform the rules that allow the majority party to completely ignore proposals from the minority party in the Congress.

I have made it clear that I favor the radical centrist position of eliminating the business tax entirely and shifting all the taxation on income to the progressive income tax.

Most people don't know that currently all those people who have benefitted from the dramatic increase in the stock market pay less in taxes on the sale of stock or their dividends than Americans who earn their income by the "sweat of their brows".

Let me say that again: Work your ass off every day and pay a higher tax rate than the guy (or gal) who doesn't do anything more than move money around.

In other words, passive income is taxed at a lower rate than what is earned by someone with a traditional job. We could eliminate the business tax entirely and bring in MORE tax revenues if we simply asked those who earned passive income to pay taxes at the same rate as other Americans. We could generate substantially more revenues if we also instituted a small tax on stock trades, thus allowing us to lower taxes on middle income Americans in other ways or we could enhance coverage of things that will serve as a public good and reduce cost of living expenses, thus creating the same effect for middle income and working class families.

Can you imagine how the people who are trying to sell the public on the bill currently masquerading as tax reform in the Congress would have to scurry if the Democrats offer a proposal that eliminated the Business Tax, gave all those companies reason to repatriate their money and really lowered taxes for middle income families? Even if the proposal did not shame the majority party into action it would establish a real position that demonstrated genuine concern for working class families and middle income families.

I'm sure to get flack from some folks about this but I'm going to keep saying it until someone listens.

A Childs Walk Thru Lupine